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Which of the Following Bonds Has the Greatest Default Risk

Question 4

Multiple Choice

Which of the following bonds has the greatest default risk?


A) A U.S Treasury bond with a two-year maturity
B) An AAA corporate bond with a seven-year maturity
C) A BBB corporate bond with a three-year maturity
D) A CCC corporate bond with a 10-year maturity
E) An AAA corporate bond with a 10-year maturity

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